Capital gains and their potential tax liabilities need to be an important part of investment decision making for an SMSF. Careful consideration and planning of when capital gains, and losses, may be realised can have a significant impact on an SMSF’s balance.
Which investments are most popular with SMSFs? A short and simplistic answer is that shares and cash and term deposits compete as the most popular investments across the board for SMSFs.
You can receive a tax credit by buying shares in Australian companies that pay franked dividends. Dividends paid to shareholders by Australian resident companies are taxed under a system known as imputation.
There is a basic difference between foreign exchange trading and other forms of investment such as share trading. Over time, share markets tend to rise, so that if an investor buys a diversified basket of shares, or even an individual share, they should expect a positive return over time.
A relaxation of rules around borrowing in self-managed superannuation funds (SMSFs) nearly a decade ago now means that SMSFs can borrow to invest in some circumstances. Although loans were originally allowed for borrowing to invest in shares, restrictions around the rules mean that in most cases they are now used for property assets.
When it comes to achieving financial security in retirement, there are myriad cognitive biases that can keep us from making smart decisions with money.
An SMSF’s trust deed is one of its most important assets. While legislation sets out what trustees must not do, the trust deed specifies what a trustee is allowed to do. Now’s the time of year to perform the yearly review of the deed.
An SMSF is a very attractive superannuation savings vehicle but it also comes with plenty of responsibility for anyone that signs up to being a trustee.
Reporters need to economise on words, so they use shorthand: words like “dividend imputation”, “franking credits”, and yes, “retiree tax”.
Self managed superannuation funds are required by law “to formulate, review regularly and give effect to an investment strategy.”
SMSF trustees are often accused of being unadventurous in their asset allocation, but some are bucking the trend with ‘exotic’ investments in everything from horse semen to vending machines and dividend-paying cows.
SMSF members could be forced to take on more risk, should the ALP be successful with its plan to scrap cash refunds from franking credits.
In this article, I dig into this subject in more detail, particularly for those who hold their shares directly in their own names, to show what the ALP proposal really means and how it would operate.
The issue of whether or not retirees should be able to get a refund in dividend imputation has sparked considerable discussion of retirees’ income and wealth.
Labor has capitulated to pressure to exempt pensioners from its plan to end cash refunds for dividend imputation credits – a concession that would shave only A$700 million off its large projected savings over the forward estimates.